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Privatization and Environmental Concern: The Port Issue By Segun Imohiosen
In a recent workshop organised by the Bureau for Public Enterprises (BPE) under the Privatization Support Project (PSP) of the World Bank with environmental stakeholders drawn from Ports Concessionaires (tenants), Nigerian Ports Authority (NPA) and Federal Ministry of Environment, Housing and Urban Development (FMEnv&UD), amongst others, a wholesome issue on Port Environment Review System came to the fore in order to set the stage for environmental management framework for which the port can operate in line with sustainable environmental development. With recourse to past activities, lack of proper environmental policy and or management by business managers and operators has been the bane of technological development in the country which relatively creates economic imbalance as it were.
Environmental issues have become major global and local phenomena. It can no longer be handled with careless abandonment. Whereas, the Privatization process offers a unique opportunity to make strategic development decisions that effect long-term environmental, economic and social performance and sustainability.
There is a strong link between the environment and socio-economic development. Therefore the drive for the global and local sustainability should be rooted in the growing recognition of this link. Environment and economic inequities are closely interrelated. Poverty pushes the poor into degraded lands and polluted slums, where economic opportunities are meagre and minimal. In this confusion, desperate hopelessness exists quite often which in turn leads to political instability. However, in order to make economic and environmental provision for the citizenry, it requires a holistic and comprehensive approach towards economic development and environmental rehabilitation. Understanding this interdependence that exists between economic and environmental concern will help in proffering sustainable panacea to both global and local environmental challenge which in the long run can affect both human and human activities adversely.
As it was observed that privatization deftly handled with adequate utilization of the forces and factors that make for thorough framework will automatically act as catalyst anywhere to liberalize and reform our economy and society. It must be realised that the previous and present administration laid emphasis on privatization and reform towards economic empowerment of the citizenry to live reasonably above the poverty level.
The thought of Nigeria with regard to the pursuance of privatization is very revealing. At the workshop, it was disclosed that Privatisation is to improve economic performance while reducing the burden of ownership and budgetary strain of loss making state-owned enterprises (SOEs). It was also disclosed that the programme targets specific priority industries and attracts investment to existing plants/enterprises. By the process it fosters technology transfer and introduces management know-how. Privatization however can generate environmental health, social as well as economic benefits, and that privatization offers an opportunity to make strategic decisions that positively effect long term economic and environmental performance and sustainability.
However, the initial perception of privatization and environmental issues were considered incompatible, but experience has shown that an environmentally friendly privatization process invariably enhances cordial relationship among the stakeholders as well as ensures overall development and sustainability of Nigerian environment.
The essence of privatization is to restructure, rationalize and improve the efficiency of enterprises and services in various sectors of the economy, and to reduce the burden of public enterprises on the treasury to enable government focus and concentrate its resources on provision of socially oriented services like health, education, security and infrastructural development. Under the right condition, privatization can generate significant environmental improvements in addition to the economic and social benefits. Such benefits include efficient use of resources in privatized firms for effective corporate governance and management; greater attention to waste reduction, and increased productivity of assets; improved access to capital which relates to increased investments in new cleaner technologies and equipment; “regulatory freedom” which is interpreted to mean loosened ties between government and enterprises and between environmental regulators and regulated enterprise, which means that economic and regulatory decisions are separated and regulatory actions to enforce environmental legislations as requirements are no longer hampered by pressures to protect inefficient industries.
The introduction of the reform into every economic sector has equally been catapulted into the port operations. Hence, the introduction of Port Environmental Review System (PERS) with the specific role for addressing all associated environmental problems in port operations – which Irene Chigbue (Mrs), DG of BPE refers to as “custom made tool”. The essence of the Port Environmental Review System (PERS) is to define the basic standard of good practice for the port sector. This also is often the basis for operators to progress successively to more comprehensive systems such as ISO 14001 and others. PERS also supplies the foundation for developing an environmental management system by identifying significant issues bordering on performance criteria. Another thing about PERS is that its review section assists in setting objectives to improve performance on environmental issues and or management.
The significance of the Port Environmental Review System (PERS) in furtherance is to prepare a publicly available environmental policy setting out strategies and methods of achieving them, provide avenue for regular review of the plans taking into account legislative and other changes, produce and publish an Annual Environmental Review report, consider the monitoring requirements and how to assess their progress, establish a number of relevant environmental indicators with targets to measure progress and consult adequately with the local community on their environmental concern. It is also an important response to the port sectors’ policy on self regulation and voluntary action in dealing with its environmental liabilities and responsibilities.
As PERS is initiated in consonance with other environmental laws and regulations that have been enacted by the Government, the best environmental practice will be adhered to and the tendency for unhealthy and adverse environmental practice in the ports be stemmed. On the long run the ultimate desire is to achieve a situation whereby the ports operations become environmentally self servicing and responsible.
The present democratic government has signalled that it is no longer willing to tolerate companies in particular and others absolving themselves of their responsibility to reduce pollution and mitigate negative environmental and social impacts. Segun Imohiosen National Press Centre Abuja
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